$165,000 in aggregate principal across two convertible promissory notes issued August 28, 2026 cost Polar Power, Inc. (NASDAQ: POLA) $150,000 in cash from LU2 Holdings LLC and CL Investment Group LLC, embedding a $15,000 origination discount upfront. The notes carry 1% monthly interest and mature November 26, 2026; any balance unpaid in cash at that date converts in full to common stock. The 8-K, signed by President and Chief Executive Officer Arthur D. Sams, also disclosed the August 24 board expansion and the election of Lewis Wilks as a new independent director.
Note mechanics
| Item | Detail |
|---|---|
| Aggregate principal | $165,000 |
| Cash consideration received | $150,000 |
| Origination discount | $15,000 |
| Monthly interest | 1.0% |
| Maturity | Nov. 26, 2026 |
| Conversion option 1 | 80% of 5-day VWAP ending at maturity |
| Conversion option 2 | $1.00 per share |
Polar Power issued one note to each counterparty; the individual principal amounts are not disclosed separately in the filing. Conversion uses the lower of the two prices above at the maturity date. The $1.00 cap is the operative figure when the five-day VWAP at maturity is above $1.25; below that level, the 80% VWAP discount applies with no stated floor.
Repayment is linked to an equity line established roughly a month before the notes were written. Under a Common Stock Purchase Agreement with Roth Principal Investments, LLC, dated July 27, 2026, the company has committed all net proceeds from any stock sold under that agreement to retire the notes until both are fully paid.
Board addition
The board voted August 24 to expand from five to six directors and elected Lewis Wilks to the new seat as an independent director. Wilks is Senior Managing Partner at Bright Peaks Venture Capital and currently serves on the board of Silverthread Inc. His prior public company board experience includes PMC Sierra, Portal Software, and Urban-gro, which now operates as Flash Sports and Media. He holds a degree from Central Missouri State University.